We have audited the accompanying financial statements of WHEELS INDIA
LIMITED, which comprise the balance Sheet as at 31st march 2014, the
Statement of profit and Loss, and the Cash Flow Statement for the year
then ended, and a summary of the significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956, (the Act) and in accordance with the
accounting principles generally accepted in India. this responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India.
Those Standards require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. the
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is suffcient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the balance Sheet, of the state of affairs of the
Company as at 31st march 2014;
(b) In the case of the Statement of profit and Loss, of the profit of the
Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India, in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraph 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
(b) In our opinion, proper books of account as required by law have
been kept by the Company, so far as it appears from our examination of
(c) The balance Sheet, the Statement of profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the balance Sheet, the Statement of profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
(e) On the basis of the written representations received from the
directors as on 31st march, 2014, taken on record by the board of
directors, none of the directors is disqualifed as on 31st march, 2014
from being appointed as a director in terms of Section 274(1)(g) of the
Annexure to the Independent Auditors'' Report (Referred to in paragraph
1 under ''Report on Other Legal and Regulatory Requirements'' section of
our report of even date)
I. a. the Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
b. these fixed assets have been physically verifed by the management at
reasonable intervals. We are informed that no material discrepancies
were noticed on such verifcation.
c. The Company has not disposed off substantial part of fixed assets
during the year.
II. a. Physical verifcation of inventory has been conducted at
reasonable intervals by the management.
b. The procedures of physical verifcation of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c. The Company is maintaining proper records of inventory and the
discrepancies noticed on physical verifcation which were not material,
have been properly dealt with in the books of account.
III. The Company has neither granted nor taken any loans, secured or
unsecured, to / from Companies, firms or other parties covered in the
register maintained under Section 301 of the Act. Hence, the clauses
(iii) (b) to (g) of the Order are not applicable.
IV. There is an adequate internal control system commensurate with the
size of the Company and the nature of its business for the purchase of
inventory, fixed assets and for the sale of goods and services. there is
no continuing failure to correct major weaknesses in internal control
V. a. The particulars of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained under the section.
b. The transaction in excess of Rs.5,00,000/- in respect of each party,
have been made at prices, which are prima facie, reasonable having
regard to the prevailing market prices at the relevant time.
VI. The Company has complied with the provisions of Section 58A and 58
AA or any other relevant provisions of the Act and the Rules framed
thereunder with regard to the deposits accepted from the public.
VII. The Company has an adequate internal audit system commensurate
with its size and nature of its business.
VIII. We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1) (d) of the
Companies Act, 1956 and are of the opinion that, prima facie, the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
IX. a. The Company is regular in depositing undisputed statutory dues
including Provident Fund, Investor education and Protection Fund,
employees'' State Insurance, Income-tax, Sales tax, Value Added tax,
Wealth tax, Service tax, Customs duty, excise duty, Cess and other
statutory dues with the appropriate authorities.
b. There were no disputed tax dues which have not been deposited with
the respective authorities in respect of Income tax, Wealth tax, excise
duty, Custom duty, Value Added tax and Cess. However disputed service
tax, value added tax and property tax aggregating to Rs.127.11 lakhs
has not been deposited on account of disputes which are contested in
appeals and are pending before Central excise and Service tax Appellate
tribunal, Joint Commissioner, Commercial tax - Appeal, Appellate deputy
Commissioner - Commercial taxes and madras High Court.
X. The Company has no accumulated losses and has not incurred cash
losses during this financial year or in the immediately preceding
XI. The Company has not defaulted in repayment of dues to a financial
institution or bank.
XII. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
XIII. The Company is not a chit fund or a nidhi / mutual benefit fund /
society. therefore clause 4 (xiii) of the order is not applicable to
XIV. The Company is not dealing or trading in shares, securities,
debentures and other investments.
XV. The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
XVI. The term loans were applied for the purpose for which the loans
XVII. Based on the balance sheet and fund fow statement of the Company
in our opinion the funds raised on short term basis have not been used
for long term investments.
XVIII. The Company has not made any preferential allotment of shares
during the year.
XIX. The Company has not issued any debentures during the year.
XX. The management has disclosed the end use of the money raised
during the year by issue of rights shares and the same has been
XXI. No fraud on or by the Company has been noticed or reported during
For SUNDARAM & SRINIVASAN
(Registration no: 004207S)
16th may, 2014 Membership no.5809